Indian infra to receive Rs 4 lkh cr pvt investment by 2012

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New Delhi November 5:: The private sector is expected to pump in Rs 4,00,000 crore into India's infrastructure in the next five years -- about one-third of the total fund requirement, global consultancy firm Ernst & Young said on Monday.

"Infrastructure is key to growth in emerging markets across the globe and private investors are eager to support to it. We expect private investments in infrastructure projects in India to cross the Rs 4 trillion mark (Rs 4 lakh crore) in the next five years," Ernst & Young Partner Kuljit singh said while releasing a report - Investing in Global Infrastructure.

Return on infrastructure investment in India is around 14-20 per cent, which is equal to the return in developed countries but at a very low risk, he said.

India plans to invest Rs 13 lakh crore (480 billion dollars) for developing infrastructure in the next five years, with power generation and roads alone requiring Rs 7.1 lakh crore, the report noted.

The government with its limited resources cannot meet this huge expenditure on its own and is looking for private-public partnership to meet the required investments, it said.

"India's capital needs are so great that it will require substantial private investments of approx 100 billion dollars and that spells opportunity for global investors," Singh said.

However, the country is not been able to attract much due to the lack of a national master plan for infrastructure development across all the sectors, the report said.